Markets on a bull run; Sensex hits fresh record of over 53k, Nifty 50 near 15,880; PSU Bank, Auto outperforms; Maruti, Adani Ports, TCS, RIL drive

Dalal Street also recorded a fresh new historic high, while Nifty 50 was pacing towards 15,900.

Jun 22, 2021 09:06 IST India Infoline News Service

Indian markets are on a bull run on Tuesday tracking gains of global cues as worries over early hikes in US interest rates calms, dollar pulls back and focuses on economic growth emerges.

All sectoral indices were in the green with PSU Bank, Auto, financials, metal and IT stocks outperforming. Dalal Street also recorded a fresh new historic high, while Nifty 50 was pacing towards 15,900.

Back at home, the expiry of derivative contracts adds to the intraday swings. Another volatile trade can be expected today.

At around 09.46 AM, the Sensex was trading at 53,003.11 up by 428.65 points or 0.82%. The 30-scrip index has touched a new 52-week high of 53018.71 in the opening bell.

On Sensex, Maruti Suzuki was the top gainer surging 3% followed by L&T up 1.5%, TCS advancing 1.4%, M&M soaring 1.3% and ICICI Bank strengthening by 1.1%.

Heavyweights SBI, HDFC, IndusInd Bank, Infosys, Axis Bank, Reliance Industries, Tech Mahindra, Titan and Bajaj Finserv further added to the winnings on Sensex by gaining around 0.6-1%.

Meanwhile, Nifty 50 was trading near the day's high at 15,875.05 up by 128.55 points or 0.82%. The 50-scrip index climbed to an intraday high of 15,880.95.

On NSE, Adani Ports took lead soaring 3.5%, while Maruti, UPL, ONGC and Tata Motors also advanced between 2-3%. However, Cipla was the top laggard here tumbling nearly 1%, whereas, HDFC Life, Nestle, Britannia and NTPC dipped marginally.

Companies that will be in focus today ahead of their March 2021 quarterly result are - NMDC, Ashapura Minechem, Aster DM Healthcare, Bharat Electronics, BL Kashyap and Sons, Gandhi Special Tubes, GE Power India, ITI, Jaypee Infratech, Max India, Omax Autos, Peninsula Land, PNB Gilts, Religare Enterprises, and Sobha.

Nifty PSU Bank soared 1.8%, while Nifty Auto jumped by 1.4%. Nifty Media and Nifty Realty climbed over 1% each. Nifty Finance Services, Nifty IT and Nifty Metal zoomed nearly 1% each.

In broader markets, India's volatility index nosedived by nearly 3%.

Asian markets bounced in green after four-week lows with Japan's Nikkei 225 witnessing super buying as the index skyrocketed 3%. Australia's ASX also jumped by 2%. South Korea's KOSPI and China's Shanghai Composite surged nearly 1% each. However, Hong Kong's Hang Seng traded flat.

On Monday, US Federal Reserve officials toned down their hawkish rhetoric.

In the wake of the Fed policy surprise, the US dollar benchmark halted its gaining spree. Weak dollar and bond yields near 1.49% bode well for Asian markets as ETF money will buy equities ex-Japan.

Investors are also keenly awaiting the US labour market as its performance is expected to influence the US Fed's policy stance.

Overnight, on Wall Street, US indices recorded a strong upside after a free fall of over 1000 points last week. The Dow Jones index rallied more than 550 points - that would be the best day in over 3 months. While the Nasdaq Composite index settled higher by 0.75%. Furthermore, the Russel 2000 settled higher by over 2% indicating the strong pullback in small & mid-cap stocks. Bond yields rise to 1.48% while the dollar witness selling pressure from emerging markets currencies.

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